Construction Law/Engineering Charges

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Question
QUESTION: Dear Daniel,

I am working on the hospital project and out contract is based on Fidic 4th Edition 1987, my questions is every time there is a variation in the Contract the Contractor claims Engineering works cost in Percentage such as shop drawings, engineers, draftsman etc. Generally all the engineering works and shop drawings etc are included in prelims.

So is it correct for the Contractor to claim Engineering works in variation even if there is no EOT for the change and how to value these Engineering Change.

Regards

Harry

ANSWER: Dear Harry,

For each variation it is correct to request the related Engineering Work. If the Engineering works are not included in unit price and separated as Prelims. you shall evaluate the engineering required for each variation request.

Daniel

---------- FOLLOW-UP ----------

QUESTION: Dear Daniel,

Thanks for your response. The Engineering works are already part of preliminaries so if the variation takes place do we still need to give them engineering works or the contractor will only be entitle if the variation constitutes EOT.

Regards

Harry

Answer
Dear Harry,

This totally depends on the nature of variation, Engineering works in preliminaries include design, procurement, risk, insurance, material storage cost and similar indirect costs. If the variation has an effect on any of these costs than yes it shall be added to variation value.

Daniel  

Construction Law

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Daniel Kazado

Expertise

I can answer questions related with FIDIC contracts.

Experience

10 years as Contract Manager for FIDIC contracts.

Education/Credentials
Mechanical Engineer
Contract Management - Basic Principles Certificate. Construction Contracts and Dispute Resolution Certificate. Contract Administration - FIDIC Certificate.

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